10. Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Carol A. Brown is the assigned Administrative Law Judge in this proceeding.

1. We find that SCE's conduct in respect to the Standard Track RFO for new generation was reasonable.

2. We find that SCE's choice of the CPV Contract from the other offers in the Standard Track RFO is reasonable.

3. We find that the CPV Contract is needed to preserve system reliability.

4. We find that the CPV Contract is reasonable and prudent and that SCE should recover any payments it makes pursuant to the contract in full through rates or such other cost recovery mechanism as may be authorized by the Commission, subject only to SCE's prudent administration of the contract.

5. SCE is authorized to allocate the benefits and costs of the CPV Contract to all benefitting customers in accordance with D.06-07-029.

6. We find that SCE's choice of the El Segundo Contract from the other offers in the Standard Track RFO is reasonable.

7. We find that the El Segundo Contract is needed to preserve system reliability.

8. We find that the El Segundo Contract is reasonable and prudent and that SCE should recover any payments it makes pursuant to the contract in full through rates or such other cost recovery mechanism as may be authorized by the Commission, subject only to SCE's prudent administration of the contract.

9. SCE is authorized to allocate the benefits and costs of the El Segundo Contract to all benefitting customers in accordance with D.06-07-029.

10. We find that SCE's choice of the Walnut Creek Contract from the other offers in the Standard Track RFO is reasonable.

11. We find that the Walnut Creek Contract is needed to preserve system reliability.

12. We find that Edison Mission Energy, an SCE affiliate, was not afforded any preferential treatment in the evaluation of its offer or in the negotiations of the final contract.

13. We find that the Walnut Creek Contract is reasonable and prudent and that SCE should recover any payments it makes pursuant to the contract in full through rates or such other cost recovery mechanism as may be authorized by the Commission, subject only to SCE's prudent administration of the contract.

14. SCE is authorized to allocate the benefits and costs of the Walnut Creek Contract to all benefitting customers in accordance with D.06-07-029.

15. We find that SCE's choice of the Wellhead Contract from the other offers in the Standard Track RFO is reasonable.

16. We find that the Wellhead Contract is needed to preserve system reliability.

17. We find that the Wellhead Contract is reasonable and prudent and that SCE should recover any payments it makes pursuant to the contract in full through rates or such other cost recovery mechanism as may be authorized by the Commission, subject only to SCE's prudent administration of the contract.

18. SCE is authorized to allocate the benefits and costs of the Wellhead Contract to all benefitting customers in accordance with D.06-07-029.

19. We find that CPV, Walnut Creek and Wellhead are exempt from the EPS requirements since they will operate as peakers and will not have capacity factors that will trigger compliance with EPS.

20. We find that while El Segundo is capable of operating as a baseload facility, the current limits by the air pollution control district limits operation of the units to a maximum 57.5% capacity factor, exempting the facility from compliance with EPS. If, however, El Segunda exceeds 60% baseload capacity it must meet EPS requirements.

1. The CPV Contract for up to 273 MW of expected capacity and associated energy for delivery from May 1, 2012 through April 30, 2022 is reasonable and should be approved.

2. The El Segundo Contract for up to 550 MW of expected capacity and associated energy with an expected initial delivery date of June 1, 2011, with the term ending May 31, 2021, is reasonable and should be approved.

3. The Walnut Creek Contract for up to 478.80 MW of expected capacity and associated energy for delivery from June 1, 2012 through May 31, 2022 is reasonable and should be approved.

4. The Wellhead Contract for up to 48.5 MW of expected capacity and associated energy for delivery from June 1, 2012 through May 31, 2022 is reasonable and should be approved.

5. The costs and benefits of the CPV Contract, the El Segundo Contract, the Walnut Creek Contract and the Wellhead Contract should be shared with all benefitting customers in SCE's service territory in accordance with the cost allocation methodology established in D.06-07-029.

ORDER

IT IS ORDERED that:

1. We authorize Southern California Edison Company (SCE) to enter into a power purchase agreement (PPA) selected in the standard track of its New Generation Request for Offers (New Gen RFO), with CPV Sentinel, LLC, for 273 megawatts (MW) of capacity and energy deliverable from May 1, 2012 through April 30, 2022.

2. We authorize SCE to allocate the costs and benefits of the CPV Sentinel, LLC PPA to all benefitting customers in accordance with the cost allocation methodology adopted in Decision (D.) 06-07-029 and the energy auction protocols adopted in D.07-09-044.

3. We authorize SCE to enter into a PPA selected in the standard track of its New Gen RFO with El Segundo Energy Center, LLC for 550 MW of capacity and energy deliverable from June 1, 2011 through May 31, 2021.

4. We authorize SCE to allocate the costs and benefits of the El Segundo Energy Center, LLC PPA to all benefitting customers in accordance with the cost allocation methodology adopted in D.06-07-029 and the energy auction protocols adopted in D.07-09-044.

5. We authorize SCE to enter into a PPA selected in the standard track of its New Gen RFO with Walnut Creek Energy, LLC for 478.80 MW of capacity and energy deliverable from June 1, 2013 through May 31, 2023.

6. We authorize SCE to allocate the costs and benefits of the Walnut Creek Energy, LLC PPA to all benefitting customers in accordance with the cost allocation methodology adopted in D.06-07-029 and the energy auction protocols adopted in D.07-09-044.

7. We authorize SCE to enter into a PPA selected in the standard track of its New Gen RFO with Wellhead Delano, LLC for 48.5 MW of capacity and energy deliverable from June 1, 2012 through May 31, 2022.

8. We authorize SCE to allocate the costs and benefits of the Walnut Creek Energy, LLC PPA to all benefitting customers in accordance with the cost allocation methodology adopted in D.06-07-029 and the energy auction protocols adopted in D.07-09-044.

9. Application 08-04-011 is closed.

This order is effective today.

Dated September 18, 2008, at San Francisco, California.

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